IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER (Assessment Year: 2011-12)

ITO, Ward 18 (3), vs. Nitin Johari, Delhi. 15, Sadhna Enclave, 2^nd Floor, New Delhi – 110 017.

(PAN : AAJPJ4136D)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Shri V.K. Agarwal, CA REVENUE BY : Ms. Baljeet Kaur, CIT DR Date of Hearing : 22.01.2025 Date of Order : 22.01.2025

O R D E R

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1. The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)-23, New Delhi (for short ‘ld. CIT (A)’) dated 19.03.2021 for Assessment Year 2011-12 raising following grounds of appeal :-

“l. The Ld. CIT(A) has erred in deleting addition of Rs.2,21,95,652/- made by AO on account of LTCG amounting to Rs.2,09,39,295/- and commission expenses @ 6% amounting to Rs.12,56,357 / - ignoring the facts and circumstances of the case.

2. The Ld CIT(A) has erred in ignoring the fact that the tally data revealing the cash payment by the assessee for obtaining bogus LTCG was enearthed during the search proceedings on Raj Kumar Kedia. That during the pre-search enquiries, it was gathered that Bhushan Steel Limited Group had taken huge accommodation entries of bogus L TCG with the help of Shri R K Kedia and hence, the Search and Seizure action was carried out on Bhushan Group & other related entities/persons and on Sh. Raj Kumar Kedia simultaneously on 13.06.2014.

3. The Ld CIT(A) has erred in not considering the fact that Section 153A mandates to assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made [and for the relevant assessment year or years]. Nowhere it is mentioned that addition should be only limited to the incriminating material found during the search for each assessment year.”

2. At the time of hearing, it is brought to our notice by the ld. AR of the assessee that a search and seizure proceedings under section 132 of the Income-tax Act, 1961 (for short ‘the Act’) were conducted in the case of Bhushan Steel Limited (BSL) Group and its group concerns and residential premises/factory of partners, directors and proprietors of the Group on 13.06.2014. The case of the assessee was also covered u/s 132 of the Act. The notice u/s 153A of the Act dated 02.05.2016 was issued and duly served on the assessee for furnishing return of income. In response, assessee filed return of income on 04.10.2016 at an income of Rs.60,48,850/-. The original return of income was filed by the assessee on 28.07.2011. The ld. AR submitted that during assessment proceedings, certain documents were found relating to AY 2014-15 and there is no material found relevant for the present assessment year since there was no pending appeals at the time of search the current assessment year being unabated assessment year without there being any incriminating material, no addition can be made. Further he submitted that the Assessing Officer proceeded to make the addition which is based on post-search enquiry and documents and in this regard, He brought to our notice findings of the ld. CIT (A) which is reproduced below :- “4.1 I have considered the material on record including written submission of the AR of the appellant filed in course of appellate proceedings. I' have also perused the assessment order 153A r.w.s 143(3) of the Income Tax Act, 1961 of the Act for A Y 2011-12 and A Y 2012-13. In both the appeals, similar additions have been made. The appellant has filed similar grounds of appeal and also filed similar replies. Hence, both the appeals are being considered together.

Appeal No: CIT (A), Delhi- 23/10199/2016-17 CAY 2011-12)

4.2.1 In Ground No.2, the appellant has contended that the assessment order dated 30-12-2016 passed u/s 153A r.w.s 143(3) of the Income-tax Act, 1961 by the Asstt Commissioner of Incom